Key Points
- The Euro remained higher versus the Japanese yen lately, and traded above the 117.00 resistance.
- There is a major resistance formed at 117.50, which the EURJPY pair is struggling to break.
- Today in the Euro Zone, the German Producer Price Index was released by the Statistisches Bundesamt Deutschland
- It posted a decline of 0.4% in Oct 2016, which was better than the forecast of 0.9%.
EURJPY Technical Analysis
The Euro made a nice upside move recently against the Japanese yen and traded above the 117.00 level. The EURJPY pair also closed above the 21 hourly simple moving average, which is a bullish sign and may take the pair higher.
On the downside, there is a bullish trend line formed on the hourly chart, which may act as a support area if the pair corrects lower.
Moreover, the 50% Fib retracement level of the last leg from the 116.64 low to 117.40 high may also act as a support. A break above the 117.50 resistance area may be considered as a buy call, and a trigger for more gains.
German Producer Price Index
Today in the Euro Zone, the Producer Price Index, which measures the average changes in prices in the German primary markets was released by the Statistisches Bundesamt Deutschland. The market was aligned for a decline of 0.9% in Oct 2016, compared with the same month a year ago.
However, the result was above the forecast, as the PPI declined by 0.4%. When we look at the monthly change, there was a rise of 0.7% in Oct 2016, which was more than the forecast of 0.1%. The report was positive, and may help the Euro.
Overall, it looks like there is a chance of the Euro gaining ground and breaking the 117.50 resistance against the Japanese yen.
